Bank of America (BAC $12.32 +0.21) announced agreements with the Federal National Mortgage Association to resolve outstanding and potential repurchase and certain other claims relating to the origination, sale and delivery of substantially all residential mortgage loans originated and sold directly to Fannie Mae from January 1, 2000 through December 31, 2008 by entities related to Countrywide Financial Corporation, and Bank of America, National Association. In addition, Bank of America announced that it signed definitive agreements to sell the servicing rights on 2.0 mln residential mortgage loans totaling approximately$306 bln, as measured by the aggregate unpaid principal balance. The agreements with Fannie Mae cover loans with an aggregate original principal balance of approximately $1.4 trln and an aggregate outstanding principal balance of approximately $300 bln. Unresolved claims by Fannie Mae for alleged breaches of selling representations and warranties with respect to these loans totaled $11.2 bln of unpaid principal balance at September 30, 2012. Bank of America also agreed to make a cash payment to Fannie Mae to settle substantially all of Fannie Mae's outstanding and future claims for compensatory fees arising out of past foreclosure delays. This payment is expected to be covered by existing reserves and an additional provision of $260 mln (pretax) recorded in the fourth quarter of 2012. Together, these actions described above are expected to reduce Bank of America's pretax income by approximately$2.7 bln in the fourth quarter of 2012. Through these actions, Bank of America is addressing substantially all of its remaining exposure to repurchase obligations for residential mortgage loans sold directly to Fannie Mae. After giving effect to the settlement agreements with Fannie Mae announced today, the company expects to reduce the range of possible loss above existing accruals for both GSE and non-GSE representations and warranties exposures to up to $4.0 bln at December 31, 2012, compared to up to $6.0 bln at September 30, 2012. Sale of Mortgage Servicing Rights: Bank of America also announced that it signed definitive agreements with two different counterparties to sell the servicing rights on certain residential mortgage loans serviced for Fannie Mae, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, and private label securitizations, with an aggregate unpaid principal balance of approximately$306 bln. Transfers of servicing rights are subject to the approval or consent of certain third parties. Other Items Expected to Impact Q4 Results In addition to the mortgage-related items discussed above, Bank of America expects its fourth-quarter 2012 financial results to be negatively impacted by approximately $2.5 bln (pretax) for the independent foreclosure reviews, litigation (primarily mortgage-related), and other mortgage-related matters. Results for the fourth quarter of 2012 are also expected to include approximately$700 mln of pretax negative debit valuation adjustments (DVA) and fair value option (FVO) adjustments related to the continued improvement in the company's credit spreads. In addition to the net tax benefit of the above items, results are also expected to be positively impacted by a benefit of $1.3 bln, primarily related to an income tax benefit from the recognition of foreign tax credits made available from the restructuring of certain non-U.S. subsidiaries. The aforementioned tax effects have no net impact on regulatory capital during the fourth quarter of 2012. Taking into account the effects of all the items above, Bank of America expects earnings per share to be modestly positive for the fourth quarter of 2012. Bank of America is scheduled to report fourth-quarter 2012 financial results on January 17, 2013.

Bank of America (BAC $12.32 +0.21) announced agreements with the Federal National Mortgage Association to resolve outstanding and potential